U.S. stock futures were slightly lower on Monday following the S&P 500 and Nasdaq Composite’s third consecutive winning week. Investors are awaiting key inflation data this week. Nasdaq futures fell 0.2%, while S&P 500 futures declined 0.05%.
Conversely, Dow futures rose by 47 points, or 0.1%. In pre-market activity, Nvidia shares dropped after a Chinese regulator announced a probe for potentially violating the country’s antimonopoly law. Last week, the S&P 500 and Nasdaq recorded 1% and 3.3% gains, respectively.
Conversely, the Dow ended the week down 0.6%. These movements were influenced by stronger-than-expected growth data, which bolstered investor optimism that the Federal Reserve might lower interest rates this month. The market is pricing in an 85% chance of a quarter-point rate cut after the Fed’s meeting on December 18.
“Everything else is working exactly the way the Fed wants,” noted Wharton School finance professor Jeremy Siegel on “Closing Bell” on Friday. “I think we’re going to have one rate cut at that December 18 meeting, but I think only two or three rate cuts next year. This strength could last.”
The Fed is in a quiet period ahead of its policy-setting meeting, with key inflation data still coming.
S&P 500 futures see a minor dip
The November consumer price index, due out Wednesday, is expected to show a 0.3% monthly increase and a 2.7% yearly rise, up from the prior month’s 0.2% and 2.6%, respectively. On Monday, investors are also eyeing October wholesale inventories data, due at 10 a.m. ET.
Canaccord Genuity noted mixed signals from the market rally last week. “Our shorter-term indicators show a deterioration in SPX breadth, coupled with increased market complacency,” analyst Michael Welch wrote in a Monday note. “At the same time, our two intermediate-term indicators moved in opposite directions; the market’s overbought condition increased while our sentiment gauge pulled back.”
Several stocks are on the move before the bell on Monday:
– Nvidia: Shares slid 2% following a Chinese regulator’s announcement of an antimonopoly probe.
– Palantir Technologies: Shares rose more than 6% after the company expanded its contract with the U.S. Special Operations Command, valued at nearly $37 million. Bank of America sees continued upside for Ralph Lauren, citing a resilient consumer base. Analyst Christopher Nardone reiterated his buy rating on the stock, raising his price objective to $267 from $255, indicating approximately 18% upside from Friday’s close.
Nardone highlighted the company’s strong brand presence and the potential for further margin expansion. In other global market news:
– Hong Kong: Stocks jumped nearly 3% after China announced more stimulus measures and policy easing. – European Markets: Opened higher on Monday, with the pan-European Stoxx 600 up 0.33%, led by mining stocks which added 1.5%.
With markets displaying mixed signals and key inflation data on the horizon, investors remain cautious yet optimistic. Major indices have shown a general upward trend, with specific stocks reacting to regulatory news and earnings reports.
